Case Law Details
Bistro Hospitality Pvt. Ltd. Vs ACIT (ITAT Delhi)
Disallowance of Rs.4,00,000/- was made by the AO on adhoc basis on the ground that the amounts claimed under the expenses are neither fully vouched nor fully verifiable, so it cannot be said that the same are wholly and exclusively incurred for the purpose of business. The Assessing Officer further observed that the Assessee could not provide call log details in the case of telephone expenses.
The Ld. Commissioner affirmed the said disallowance by holding “that expenditure claimed on five expenses is of Rs.2,83,47,620/- and disallowance due to un-verifiability is of Rs.4,00,000/- which is 1.41%, which is very reasonable and not capricious. We find that the Ld. Commissioner has passed the reasoned, logical and reasonable order for just decision of the case, after considering the peculiar facts and circumstances of the case, the submissions of the Assessee and determination made by the AO, even otherwise we do not find any reason and/or material to controvert the findings of the authorities below. Thus, the addition under challenge is sustained.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal has been preferred by the assessee against the order dated 12.02.2019, impugned herein, passed by the learned Commissioner of Income-tax (Appeals)-2, New Delhi (in short ‘ld. Commissioner’) u/s. 250(6) of the Income-tax Act, 1961 (in short ‘the Act’) for the assessment year 2015-16.
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